Commercial chapter 11 bankruptcy filings increased 42% in April 2026 compared to the same month in 2025, according to new data released by Epiq AACER and the American Bankruptcy Institute.
The report showed 644 commercial chapter 11 filings in April 2026, up from 454 filings recorded in April 2025. Overall commercial bankruptcy filings also rose 21% year over year, reaching 3,060 filings. Small business filings increased 46% during the same period.
Across all categories, total bankruptcy filings reached 56,427 in April 2026, representing a 14% increase from April 2025. Individual bankruptcy filings rose 13% year over year. Chapter 7 filings increased 14%, while chapter 13 filings rose 11%.Â
According to Michael Hunter, vice president of Epiq AACER, continued pressure in consumer credit markets has contributed to the rise in individual bankruptcy filings. The report noted that auto loan delinquencies remain near 15-year highs, while foreclosure filings increased 26% during the first quarter of 2026. Rising gas prices, increasing property taxes, and higher homeowners’ insurance costs were also identified as contributing factors affecting household finances.Â
The data also revealed a significant increase in chapter 12 bankruptcies, which are designed for family farms and fisheries. Chapter 12 filings rose 130% year over year in April 2026, reaching the highest monthly total since February 2020.Â
Amy Quackenboss, executive director of the American Bankruptcy Institute, stated that inflation, higher borrowing costs, and geopolitical uncertainty continue to place financial strain on both businesses and consumers.
The report further noted that bipartisan legislation currently moving through Congress would raise debt eligibility thresholds for both subchapter V business restructurings and chapter 13 consumer bankruptcy filings.Â
Although total bankruptcy filings declined slightly compared to March 2026, the increase in commercial filings and subchapter V elections month over month indicated continued financial stress within the business sector.Â
Author:Â Jennifer Evancic
Jennifer.Evancic@ResourceManagement.com
Jennifer Evancic is a third-party auditor valued by creditors and large organizations for her knowledge in call monitoring within the collections industry. With meticulous attention to detail and a firm grasp of regulatory requirements, she ensures compliance with clients’ criteria and state and federal regulations.
Jennifer audits collections calls, ensuring they meet client-specific criteria and comply with regulations, providing valuable insights and maintaining industry standards.
Beyond her auditing responsibilities, Jennifer takes the lead in organizing and facilitating monthly call calibrations. These sessions serve as a collaborative forum where clients and their vendors come together to discuss call monitoring results and address any findings or areas for improvement. Jennifer’s guidance fosters open communication and ensures alignment between clients and vendors, driving continuous improvement in collections practices.
Jennifer stays up-to-date with compliance and industry best practices by participating regularly in peer meetings, regulatory updates and industry webinars. This keeps her informed about emerging issues and ensures she remains a knowledgeable leader in collections compliance.
